SAN DIEGO--(BUSINESS WIRE)--Mentor Capital, Inc. (OTC Markets: MNTR) reports that Bhang Corporation owners, Mr. Scott Van Rixel (67.5%), Mr. Richard Sellers (30%), and Mr. William Waggoner (7.5%) have received $1.5 million from Mentor Capital without returning value for Mentor’s shareholders and while repudiating their agreement with Mentor. It appears that the Bhang owners intend to keep the $1.5 Million, and give Mentor and its shareholders nothing in return.
Because Mentor and many of Mentor’s shareholders were looking forward to Bhang Corporation growth, Mentor has made an offer to resolves its differences with Bhang and its owners including exploring dividending the Bhang stock Mentor purchased to its shareholders.
In its most recent offer, Mentor Capital provided a blue print to Bhang and its owners on August 1, 2014 as to how Bhang shares might be fairly exchanged for the cash the Bhang owners were paid and continue to hold. To ensure there is no negative bias to this win-win proposal, it is proposed that neither Mentor Capital, Inc. nor its CEO, Chet Billingsley would hold any shares in the resulting Bhang public entity.
Alternatively, if the Bhang owners wish to find substitute investors or otherwise pay back the $1.5 Million owners received, Mentor Capital provided a plan for that repayment which allowed for a market return to Mentor and its shareholders. Mentor Capital would then intend to find alternative investments in the cannabis market for the benefit of its shareholders.
These proposals and the call to integrity and fair treatment follow two months of ongoing discussions between the lawyers and owners of Bhang Corporation and Mentor Capital, Inc. During this time, and earlier, Bhang has steadfastly refused to perform its contract provisions and has failed to return or even publicly mention the $1.5 Million in funds the owners have received and kept. Mentor Capital and its management team have fiduciary responsibility to pursue a fair and equitable resolution of this dispute by all legal means. The Bhang proposal that they keep the $1.5 Million and Mentor’s shareholders receive nothing is untenable.
The Bhang / Mentor contract is posted at the Mentor Capital home page and defines payment, alternatives in case of shortfall, the going public option and the contingent payoff provision. The contingent payoff provision is at the sole discretion of Mentor, has been triggered, trumps other provisions, and allows for payment over about three years with any shortfall made up in stock. Mentor Capital is in full compliance with this contingent payoff provision, which, as its name implies, was designed to provide for the orderly continuation of the contract in the event of changing circumstances.
Mentor Capital, Inc. has made a $1.5 Million cash investment into Bhang Corporation and retains significant active contract rights. The company will continue to list its investment in Bhang Corporation and Bhang Financial in its portfolio until the investment is resolved by action of the parties or the courts.
About Mentor Capital: By acquisition or stock purchase, Mentor Capital, Inc. seeks to invest in leading cannabis companies. Additional important information for investors and founders seeking expansion funding is presented at: www.MentorCapital.com
This press release is neither an offer to sell, nor a solicitation of offers to purchase, securities.
Forward Looking Statements: This press release contains forward-looking statements within the meaning of the federal securities laws, including statements concerning financial projections, financing activities, corporate combinations, product development activities and sales and licensing activities. Such forward-looking statements are not guarantees of future results or performance, are sometimes identified by words of condition such as “should,” “could,” “expects,” “may,” or “intends,” and are subject to a number of risks and uncertainties, known and unknown, that could cause actual results to differ materially from those intended or anticipated. Such risks include, without limitation: nonperformance of investments, partner and portfolio difficulties, potential delays in marketing and sales activities, problems securing the necessary financing to continue operations, problems encountered in commercializing cannabis products, potential of competitive products, services, and technologies, difficulties experienced in product development, difficulties in recruiting knowledgeable and potential problems in protecting intellectual property. Further information concerning these and other risks is included in the Company’s 15c2-11 filing which, along with other very important information about the Company, can be found here:
The Company undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances occurring after the date of this press release.